Happy Holidays!  The attached economist summary contains a very useful explanation about what is taking place in today's economy especially as it pertains to mortgage rates plummeting.  For that matter, the 30 year fixed conforming loan with loan to value of up to 80% at a size of up to $417,000 is priced today with no points at 5%, paying 1% discount fee takes the rate down to 4.625%.)

Also, some very important news for real estate professionals who specialize in second homes...  The 2009 high balance conforming loan program is changing to allow buyers of second homes to only have to put 20% down (rather than 40% down in 2008) when obtaining this special rate.  For example, this means that in Placer county a borrower can obtain a second home loan for up to $474,900 and in Nevada county a borrower can obtain a second home loan for up to $477,000 and get 30 year fixed rates that today are at 5.25% with no points.  A great enhancement to this beneficial program.

Product Interest Rate   APR    
Conforming1 Loans                      
                       
30-Year Fixed   4.875%  5.086% 
20-Year Fixed   5.000%  5.289% 
15-Year Fixed   4.750%  5.115% 
5-Year ARM      6.125%  5.256% 
Jumbo Loans – Amounts that exceed conforming loan limits1                      
30-Year Fixed   8.000%  8.166% 
15-Year Fixed   7.375%  7.631% 
10-Year ARM     7.875%  6.906% 
5-Year ARM      6.125%  5.178% 
FHA – loan limits vary by county.                      
30-Year Fixed   5.500%  6.170% 

All rate quotes shown come with one point as an origination fee.

Assumptions and APR Information